The Benetton Group Annual Report 1996

Consolidated statements of income for the years ended December 31, 1995 and 1996
A VALUE OF PRODUCTION
(in millions of Lire) (Thousands
of US $) (1)
1995 1996 1996
1 Revenues from sales and services 2,939,134 2,871,108 1,890,131
2 Changes in work in progress, semi-manufactured
products and finished goods (9,814) (81,220) (53,469)
4 Capitalization of internal work 2,292 3,608 2,375
5 Other income and revenues 25,427 18,669 12,290
TOTAL VALUE OF PRODUCTION 2,957,039 2,812,165 1,851,327
B PRODUCTION COSTS
6 Raw material, other materials, consumables
and goods for resale 924,736 790,437 520,367
7 Services received 1,017,756 1,035,382 681,621
8 Leases and rentals 44,729 37,561 24,727
9 Payroll and related costs:
a wages and salaries 241,934 229,049 150,790
b social security contributions 76,182 77,474 51,003
c employee termination indemnities 17,114 13,752 9,053
e other costs 2,036 1,353 891
Total payroll and related costs 337,266 321,628 211,737
10 Amortization, depreciation and writedowns:
a amortization of intangible fixed assets 19,248 18,461 12,153
b depreciation of tangible fixed assets 81,741 76,451 50,330
d writedown of current receivables and of liquid funds 60,839 78,304 51,550
Total amortization, depreciation and writedowns 161,828 173,216 114,033
11 Changes in raw materials, other materials,
consumables and goods for resale (28,221) (2,825) (1,860)
12 Provisions to risk reserves 7,357 13,638 8,978
14 Other operating costs 51,350 49,162 32,365
TOTAL PRODUCTION COSTS 2,516,801 2,418,199 1,591,968
DIFFERENCE BETWEEN VALUE AND
COST OF PRODUCTION 440,238 393,966 259,359
C FINANCIAL INCOME AND EXPENSE
15 Income from equity investments 11,891 6,223 4,097
16 Other financial income:
a from receivables held as financial fixed assets
- subsidiary companies 94 75 50
- other companies 506 506 333
600 581 383
b from securities held as financial fixed assets
not representing equity investments 17,141 15,821 10,415
c from securities included among current assets
not representing equity investments 27,663 24,635 16,218
d Financial income other than the above
- subsidiary companies 586 227 149
- associated companies - 6 4
- other companies 544,741 504,835 332,347
545,327 505,068 332,500
Total other financial income 590,731 546,105 359,516
17 Interest and other financial expense 593,008 448,435 295,217
TOTAL FINANCIAL INCOME AND EXPENSE 9,614 103,893 68,396